Suppose the Price Elasticity of Supply for How-To Books Is

question 152

Multiple Choice

Suppose the price elasticity of supply for how-to books is 0.3 in the short run and 1.2 in the long run.If an increase in the demand for how-to books causes the price of how-to books to increase by 5%,then the quantity supplied of how-to books will increase by

• A) 1.5% in the short run and 6% in the long run.
• B) 6% in the short run and 1.5% in the long run.
• C) 16.7% in the short run and 4.2% in the long run.
• D) 4.2% in the short run and 16.7% in the long run.

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Definitions:

Proportion

A statistical measure that indicates the fraction of the total number of outcomes that share a particular attribute or characteristic.

Estimated Odds

The calculated likelihood of a particular outcome in comparison to the likelihood of another outcome.

Multiple Logistic Regression

A statistical method for analyzing a dataset in which there are one or more independent variables that determine an outcome, which is dichotomous.

Dependent/Outcome Variable

In statistical modeling, this variable is what researchers aim to predict or explain, depending on the independent variables.